The US-China Trade War and Its Impact on iPhones Imported From China

The US-China trade war is escalating. In the first two rounds of tariffs, the US has imposed duties on a total of US$50 billion worth of Chinese goods, including semiconductor ICs, car parts, machinery, and equipment. The third round of tariffs has brought the total value to US$250 billion. However, Trump has no intention to back down as he has threatened to impose tariffs totaling $500 billion on 90% of Chinese imported goods. Smartphones are likely to be on the list. As Apple has heavily relied on Taiwanese manufacturers for its iPhones, the new tariffs are likely to have a major impact on Apple iPhone's supply chain. This report starts from the background of the incident, examines the impact from the market and supply chain perspectives, and gives a brief analysis of countermeasures of iPhone partners in short and mid-to-long terms.